As I've pointed out in previous blogs the financial industry is growing as a percentage of the economy and the real economy that involves physical production is suffering. Also, the cost of health care and high education have risen dramatically in recent years. Good jobs are being lost to automation and outsourcing. However, re-shoring of industry is bringing back some of those positions and jobs are being created in the technology industry. GMOs (Genetically Modified Organism) and pesticides are diminishing the quality of our food. This trend could harm the health of the population and lead to a decrease in life expectancy. Russia banned GMOs because of President Putin's decision. The situation in the Ukraine was engineered so that Monsanto could export GMO seeds and pesticides to the country through its sea ports. As you may know, the government in the Ukraine was toppled so that the new regime would align itself with NATO and allow Monsanto to export GMO seeds and pesticides to the country.
The banking industry takes unnecessary risk through high frequency trading of securities and derivative trading. This could lead to billions of dollars in loses. Furthermore, the banking industry is controlled by only a handful of large corporations. These issues illustrate the needs to use local credit unions and community banks. On April 20, 2010 when a Deepwater Horizon oil rig exploded in the Gulf of Mexico about 41 miles (66 km) off the coast of Louisiana—and its subsequent sinking on April 22. The oil well was located about 4,993 feet (1,522 meters) under the sea on the sea floor and extended approximately 18,000 feet (5,486 meters) into the rock. The explosion of the oil well resulted in billions of dollars of loses for fishermen and local communities around the coast of The Gulf of Mexico. Also, a great deal of damage was done to the environment and the sea creatures were harmed. It was the biggest marine oil spill in history. This event demonstrates the need for energy to be produced locally. Perhaps, by having an array of solar panels in a field and using windmills. Using windmills or a field of solar panels is much cheaper than having individual households put solar panels on their roof.
The issues I illustrated in the last few paragraphs paint a bleak picture of the world we live in. All of these issues can be solved by simple lifestyle and financial decisions that all make on a daily basis. A Placed Based system of finance and industry could be created if every household redirected a small portion of their spending to small businesses and utilized community banks or credit unions for their banking needs. Also, we have to eat healthier. This means going to a fast food restaurants a lot less often and when we do eat out on those special occasions such as a birthday we go to a locally owned restaurant. Also, more food would be purchased from farmer markets and when food is purchased from grocery stores most of it is organic, Organic food is much healthier because it does not contain harmful pesticides or GMOs that non organic food contains. I would encourage readers to engage in entrepreneurial activity or find ways to help create an environment that support entrepreneurship in your local community.
Currently, there are harmful regulations in place that make it very difficult to open up a small business. Many of these regulations are written by large corporations that have lobbyists in Washington and every state capital in the country. Small businesses are the back bone of our economy. They take enormous risk to develop products and services that could potentially improve the quality of life for people. Large corporations do not try not innovate nearly as much because its too costly for them and there is simply too much bureaucracy to work through. Small business, community banks, and credit unions have close ties to the communities they serve. These means that it is in their best interest to serve their customers to the best of their ability. Many small business lack the talent to be successful. I would encourage small business to hire interns from universities and community colleges. This would be much cheaper than hiring a college graduate and it would add much needed expertise to the business. Also, I would encourage local chambers of commerce and local economic development groups to step up their efforts to create an environment that supports entrepreneurial activity. Even if it means spending less time attracting companies to locate to the area.
Placed Based Industry would mean that the production of products and services that people use would take place in their local community. People would be able to talk to everyone involved in the process of producing, promoting, and selling the products and services they use. This includes healthcare. Currently, there are local hospitals and doctors that work tirelessly to serve patients in their local community. Many of these doctors have their own practice. However, big pharma is in the hands of a few large corporations that have raised the prices of their products dramatically over the past few decades.
As I mentioned earlier, the need to produce energy locally is great. The need could be fulfilled by small companies working together to make solar panel arrays in field and windmills. In some counties people are pushing back against companies that are trying to build windmills. Windmills do not make that much noise. There is concern that windmills could kill bird. This problem can be avoided by studying the migration routes of birds so that birds are not harmed. By taking these steps the cost of energy would be reduced dramatically and we would break are dependence on oil imported from South America, the Middle East, and North Africa. Electric cars that do not have a gas tank would be much cheaper than the latest version of cars that can run on electricity. Indeed, charging stations would be needed to ensure that drivers could charge their vehicles and the technology would have to be improved upon so that the cars charge much faster.
Earlier in the blog, I pointed out that industry is re-shoring. This trend started on the east and west coast and is working its way to the heartland. This also means that capital is being re-shored. Not just financial capital but also human capital. Talented workers are being brought in from other countries especially China. Companies will eventually have to invest in training American workers.
The need to provide education locally is becoming more important than ever. Currently, there are local public schools that do a wonderful job serving the youth in their local community. However, many of these schools are losing control to state and federal governments in the wake of common core legislation. This means that parents are losing control as well. Also, tuition even at public universities has been steadily increasing over the last few decades. Perhaps, university education could be provided more locally to solve this problem. There are community colleges that serve local communities. However, these institutions provide two year degrees or some classes to transfer to a four year college. It would also help the local economy if more students could earn their bachelor degree without having to move to another city.
Former Assistant Secretary of Housing and Urban Development under the George W.H Bush administration, Catherine Austin Fitts has been beating the drum on the need to implement a system of Placed Based Finance and Industry. I have attached a link to the articles on her website that discusses this issue further in depth and practical solutions to problems local communities face. On the page that I put a link to there are a number of articles from other websites that are not written by Catherine Austin Fitts.
"Take Action" – 4th Quarter 2018
https://home.solari.com/go-local-4th-quarter-2018/
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